If you’re applying for a mortgage as a self-employed applicant, lenders will usually ask for specific documents to verify your income.

Two of the most commonly requested documents are:

• SA302s
• Tax Year Overviews

These are HMRC documents that show the income you’ve declared through Self Assessment. Mortgage lenders use them to confirm your earnings and assess affordability.

In this guide, we explain what these documents are, what information they include, and how lenders typically interpret them for different types of self-employed applicants.

What Is an SA302?

An SA302 is an HMRC tax calculation. It’s generated after a Self Assessment tax return has been submitted, and it shows the income and tax figures HMRC has calculated for that tax year.

An SA302 typically includes:

• Income from employment (if applicable)
• Income from self-employment
• Dividends
• Profit from land and property (rental income)
• Other taxable income
• Total taxable income
• The amount of tax due

For mortgage purposes, lenders focus mainly on the income figures shown on the SA302, as these represent income that has been formally declared to HMRC.

What Is a Tax Year Overview?

A Tax Year Overview is a separate HMRC document. While the SA302 focuses on income and tax calculations, the Tax Year Overview confirms the tax position for that year.

It usually shows:

• The total tax due
• Payments made to HMRC
• Any balance outstanding

Mortgage lenders often request the Tax Year Overview alongside the SA302, as it helps confirm that the tax calculation aligns with HMRC’s official records.

Why Do Mortgage Lenders Ask for Both?

SA302s and Tax Year Overviews are commonly used as part of a lender’s standard income verification process for self-employed mortgage applications.

Together, they allow lenders to:

• Verify declared income for the relevant tax years
• Confirm the figures have been submitted to HMRC
• Cross-check tax owed against the income shown
• Review income consistency over time

Most lenders request two years’ SA302s and the matching two Tax Year Overviews, although requirements vary depending on the lender and the applicant’s circumstances.

How Lenders Use SA302s for Sole Traders

For sole traders, income is usually assessed using the net profit shown on the SA302.

This figure represents profit after allowable business expenses, and it is the amount that is taxed under Self Assessment.

When reviewing a sole trader application, lenders typically look at:

• The net profit shown for each tax year
• How consistent income has been
• Whether profits are stable, increasing, or decreasing

Because sole traders are taxed on profit (rather than turnover), it is the net profit figure on the SA302 that lenders generally treat as income.

The Tax Year Overview supports this by confirming the tax owed for that year.

Profit From Land and Property on an SA302

SA302s can also include profit from land and property, which usually relates to taxable rental income declared through Self Assessment.

This figure represents rental income after allowable expenses and is shown as taxable profit.

Some mortgage lenders may consider this income when assessing affordability, particularly where it is consistent and supported by tax documentation.

As with other forms of self-employed income, lenders typically rely on the taxable profit figure shown on the SA302.

How Lenders Use SA302s for Limited Company Directors

For limited company directors, income can appear differently on tax documents. This is because directors often take income through a combination of:

• Director’s salary (via PAYE)
• Dividends
• Company profits retained in the business

On an SA302, a limited company director’s income will usually show as:

• Employment income (director’s salary)
• Dividends received
• Total taxable income

Many lenders assess limited company directors using Director’s salary and dividends. This is because these are the figures shown on the director’s personal tax return.

Why Lender Assessments Can Differ for Ltd Company Directors

Some mortgage lenders take a different approach when assessing limited company directors.

Depending on their criteria, certain lenders may consider:

• Director’s salary + share of company net profit (after tax)
• Director’s salary + share of profit before tax (available through some specialist lenders)

In cases where company profit is used, lenders typically require company accounts alongside personal tax documents. This is because company profit figures do not appear on the SA302 unless they have been distributed as dividends.

Why SA302 Income Doesn’t Always Reflect Total Company Profit

It’s common for limited company directors to have SA302 income figures that look lower than their company’s overall profits.

This happens because:

• The SA302 shows personal taxable income only
• Company accounts show business performance and retained profits
• Dividends may represent only part of the profit generated
• Corporation tax affects profit figures before dividends are paid

As a result, two directors running similar businesses may have very different SA302 figures depending on how income is structured.

Mortgage lenders base affordability on the income figures they accept under their criteria.

How Many Years of SA302s Do Lenders Typically Request?

Most lenders request:

• Two years of SA302s
• Two corresponding Tax Year Overviews

Some lenders may request three years, while others may accept one year depending on circumstances.

Where more than one year is requested, lenders typically compare figures across tax years to assess income consistency and trends.

If you’d like to read more about how lenders approach one-year vs two-year income assessment, you may find our guide to how mortgage lenders average self-employed income (and when they don’t) helpful.

Do All Self-Employed Applicants Need SA302s?

In many cases, SA302s and Tax Year Overviews form part of the standard document list for self-employed mortgage applications.

However, requirements can vary depending on:

• Whether the applicant is a sole trader or limited company director
• The length of trading history
• The lender’s policy
• The type of income being used for affordability

For example, some contractor applications may involve additional evidence such as contracts or payslips alongside tax documentation.

Why SA302 Figures Can Differ from Accounts

It’s also common for SA302 figures to differ from the figures shown in accounts.

This can happen for several reasons, including:

• The SA302 is based on taxable income
• Accounts may include adjustments not reflected in the SA302
• Company profit and personal income are not the same thing
• Dividends may not match overall business performance

For sole traders, net profit in accounts often aligns closely with the taxable profit shown on the SA302, although allowable tax adjustments can affect the final figures.

For limited company directors, SA302 figures may reflect salary and dividends, while company accounts show the full business profit.

Understanding income evidence for self-employed mortgages

SA302s and Tax Year Overviews are two of the most common documents mortgage lenders use to verify self-employed income.

For sole traders, lenders usually focus on the net profit shown on the tax calculation. For limited company directors, income may be assessed using salary and dividends, or in some cases salary plus a share of company profit, depending on the lender’s criteria.

If you’d like to explore how lenders assess self-employed income in more detail, our guide to mortgages for self-employed applicants explains the process and typical documentation in more depth.

You may also find it helpful to read our related article on how mortgage lenders average self-employed income (and when they don’t), which explains how lenders typically use one year vs two years of figures.